SCO Redefined
By Erin Harris, associate editor
Questions arose earlier this summer when Albertsons and Kroger announced that they were doing away with all or a portion of their self-checkout (SCO) lanes in order to increase human interaction, and in turn improve customer service and satisfaction. Customer satisfaction is the silver bullet to a successful retail operation, but is SCO really in jeopardy? According to Doug Wallace, VP of retail division at Wincor Nixdorf, the answer to that question is a resounding no. Recently, I had the opportunity to record a podcast with Wallace where we covered timely growth strategies for retailers, and Wallace explained why retailers should focus their energy on self-service.
As some grocers rethink the SCO model, they are considering the metro or European style of checkout lanes. This format queues customers in one line that feeds into multiple staffed express lanes. Metro lanes are reported to have an average wait time of 5 to 20 seconds. While metro lanes may decrease wait time, removing SCO altogether can alienate some of your best customers who appreciate the opportunity to shop your store with little (if any) interaction. Yet, SCO has room for improvement. Indeed, as a loyal and proficient self-checkout user, I appreciate the frustration that comes with being stuck behind a novice SCO customer. As next-gen SCO technology evolves, it must become more user-friendly and the per-item scan speed must increase.
SCO technology must be designed for the customer, not the retailer; and ease of use and speed must top the SCO specs list (read Matt Pillar's Q&A with Wallace on next-gen SCO). In fact, in partnership with Datalogic, Wincor Nixdorf recently released the 360 Scan Portal, an automatic checkout solution for ICA, a Sweden-based retail chain. Customers will be able to shop as usual, but checkout time has decreased as scanning time has improved (the 360 Scan Portal scans an item per second). Wallace states that the 360 Scan Portal invites a larger basket size due to its scanning speed, providing retailers with options to assist their customers in value-added ways. U.S. retailers have put pressure on companies like Wincor Nixdorf to develop a similar SCO solution for them.
Self-checkout can be a speedy process — unless you find yourself behind someone who can't figure it out. Advancements in SCO technology, including customizable software and improved reliability, stand to make all shoppers SCO-savvy.
If your store utilizes SCO, what are your successes and struggles? Email me at erin.harris@jamesonpublishing.com to let me know.